Central Banks
Euro-Zone Banks Tighten Firms’ Credit Standards Most Since 2023
- Fourth-quarter trend mainly due to banks in Germany, France
- Quarterly ECB survey shows slight rise in firms’ loan demand
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Banks in the euro area tightened credit standards for companies by the most since 2023, according to the European Central Bank — dashing hopes for a quick recovery in corporate lending that could support investment.
The trend in the fourth quarter “was mainly owing to banks in Germany and France in an environment of increased political uncertainty, whereas credit standards eased in Italy,” the ECB said Tuesday in its quarterly Bank Lending Survey.